Lessee Leases

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Lessee Leases

Note 6 – Lessee Leases

Our operating leases are comprised of office space and office equipment leases. Fleet and vehicle leases entered into prior to January 1, 2019, under ASC 840 guidelines, have 4-year terms and are classified as operating leases. Fleet leases entered into beginning January 1, 2019, under ASC 842 guidelines, are expected to be extended to 5-year terms and are classified as finance leases.

Gross right of use assets recorded under finance leases related to WCI vehicle fleet leases were $1,289,714 and $882,081 as of December 31, 2022 and 2021, respectively. Accumulated amortization associated with finance leases was $394,391 and $236,470 as of December 31, 2022 and 2021, respectively.

Lease costs recognized in our consolidated income statements is summarized as follows:

	Year Ended December 31, 2022		Year Ended December 31, 2021
Operating lease cost included in cost of goods	$	13,054	$	100,222
Operating lease cost included in operating costs		54,571		47,287
Total operating lease cost (1)		67,625		147,509
Finance lease cost, included in cost of goods:
Amortization of lease assets		278,006		151,200
Interest on lease liabilities		39,931		24,719
Total finance lease cost		317,937		175,919
Short-term lease cost		-		-
Total lease cost	$	385,562	$	323,428

Right of use asset amortization under operating agreements was $223,151 and $146,068 for the years ended December 31, 2022 and 2021.

Other information about lease amounts recognized in our consolidated financial statements is summarized as follows:

	December 31, 2022			December 31, 2021
Weighted-average remaining lease term – operating leases		4.75 years			0.95 years
Weighted-average remaining lease term – finance leases		4.63 years			3.83 years
Weighted-average discount rate – operating leases		6.0	%		5.7	%
Weighted-average discount rate – finance leases		5.5	%		3.8	%

Finance lease liabilities were as follows:

	December 31, 2022			December 31, 2021
Gross finance lease liabilities	$	897,849		$	634,192
Less: imputed interest		(89,939	)		(51,212	)
Present value of finance lease liabilities		807,910			582,980
Less: current portion		(232,058	)		(167,515	)
Long-term finance lease liabilities	$	575,852		$	415,465

Mentor Capital, Inc.

Notes to Consolidated Financial Statements

December 31, 2022 and 2021

Operating lease liabilities were as follows:

	December 31, 2022			December 31, 2021
Gross operating lease liabilities	$	428,946		$	55,865
Less: imputed interest		(58,782	)		(8,832	)
Present value of operating lease liabilities		370,164			47,033
Less: current portion		(62,861	)		(42,058	)
Long-term operating lease liabilities	$	307,303		$	4,975

Lease maturities are disclosed in Note 15.